FX168 Financial News (Asia Pacific) - On Wednesday (November 27), the Japanese Nikkei Index fell, with the automotive manufacturers sector leading the decline, mainly due to investors' concerns about U.S. President-elect Donald Trump's tariff commitments and the strengthening yen.

As of the close, the Nikkei 225 Index fell by 0.8% to 38,134.97 points; the broader Topix index fell by 0.9% to 2,665.34 points. #JapaneseMarket#

In the main board market of the Tokyo Stock Exchange, transportation equipment, marine transportation, and nonferrous metals sectors led the decline.

Out of over 1,600 stocks listed on the main board of the Tokyo Stock Exchange, 16% rose, 82% fell, and 1% remained unchanged.

The automotive manufacturers index fell by 3.39%, becoming the worst-performing sector among the 33 industry classification indices at the Tokyo Stock Exchange.

On Monday, Trump pledged to impose new tariffs on imports from Canada, Mexico, and China. Analysts pointed out that this news raised concerns in the market that Japanese products might face similar measures.

"Despite strong performance on Wall Street overnight, Nikkei futures traded on the Chicago Mercantile Exchange (CME) fell, indicating a rather subdued sentiment among foreign investors," said Yusuke Sakai, senior trader at T&D Asset Management.

On Tuesday, stocks on Wall Street led by the S&P 500 Index and Nasdaq Index rose, technology stocks rebounded, while investors were digesting Trump's tariff commitments and the latest minutes from the Fed's meeting.

"Furthermore, the strengthening of the yen has further weighed on market sentiment," added Sakai.

Due to concerns that Trump's plans to impose tariffs on imports from China, Canada, and Mexico could harm the global economy, the yen asIts price has soared to a historic high, closely related to market expectations of interest rate cuts by the Federal Reserve.Attracting bids, the dollar fell to a low range of 152 yen during the Asian trading session.

On the individual stock front, the auto manufacturers sector generally declined, with Toyota Motor falling 3.62%, the largest drag on the Nikkei 225 index; Nissan and Honda Motor fell 4.74% and 3.04% respectively.

Chip testing equipment manufacturer Advantest fell 3.71%, exerting the most drag on the Nikkei 225 index. Brokers indicated that investors are reassessing the semiconductor-related sector after last week's unsatisfactory earnings report from U.S. chip giant Nvidia Corp.

Sanrio, the owner of the 'Hello Kitty' brand, plummeted by 14.42% after announcing the sale of a portion of its shares. Keisei Electric Railway rose by 5%, becoming the stock with the largest increase in the Nikkei 225 index, as it announced the sale of Oriental Land shares worth 62 billion yen (approximately 0.4061 billion U.S. dollars). Tokyo Disneyland operator Oriental Land rose by 3%.

Investors have also become more cautious about global trade prospects, with reports suggesting that Trump will nominate Jamieson Greer as the next U.S. Trade Representative. This lawyer previously participated in trade negotiations with China and other countries during his first presidential term.

"For manufacturers, any considerations regarding relocating their operations take time, and the potential impact of Trump's victory and tariff plans has significantly increased the risks for auto manufacturers," said Kazuo Kamitani, a strategist at the Nomura Securities Investment Content Department.